Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. estimated income statements, using absorption and

Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of...

80.2K

Verified Solution

Question

Accounting

Estimated Income Statements, using Absorption and Variable Costing
Prior to the first month of operations ending October 31, Marshall Inc. estimated the following operating results:
Sales (18,400$63)
$1,159,200
Manufacturing costs (18,400 units):
\table[[Direct materials,699,200],[Direct labor,165,600],[Variable factory overhead,77,280],[Fixed factory overhead,92,000],[Fixed selling and administrative expenses,25,000],[Variable selling and administrative expenses,30,300]]
The company is evaluating a proposal to manufacture 20,000 units instead of 18,400 units, thus creating an ending inventory of 1,600 units. Manufacturing the additional units will not change sales, unit variable factory overhead costs, total fixed factory overhead cost, or total selling and administrative expenses.
a.1. Prepare an estimated income statement, comparing operating results if 18,400 and 20,000 units are manufactured in the absorption costing format. If an amount box does not require an entry leave it blank.
Marshall Inc.
Absorption Costing Income Statement
For the Month Ending October 31
Cost of goods sold:
18,400 Units Manufactured 20,000 Units Manufactured
$ $
$
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

For a standard normal curve, find the z scores for the following: the lower and upper...

Biology
1.2K views

12 Drag the tiles to the correct boxes to complete the pairs Match the correct...

Biology
1.2K views

Which organism directly eats Submerged Aquatic Vegetation SAV in this food web A Herbivorous Duck...

Basic Math
1.2K views

A typical glass of wine contains about 22 grams of alcohol Consider a 92 pound...

Calculus
1.2K views

Use the following matrices to compute the expression AB 312 2 2 1 3 0...

Calculus
1.2K views

Graph the following function and then find the specified limits When necessary state that the...

Algebra
1.2K views

You are performing 7 independent Bernoulli trials with p 0 3 and q 0 7...

Accounting
1.2K views

Current Attempt in Progress Oriole Enterprises Ltd., a private company following ASPE earned accounting income...

Accounting
1.2K views

Balance sheet preparation Use the appropriate items from the following list to prepare Mellark's Baked...

Accounting
1.2K views

ABC Corp has bonds on the market with 7.5 years to maturity, a YTM of...

Accounting
1.2K views

A stock is trading at $ 100. A three-month European put option with a strike...

Finance
1.2K views

A $1,000 par value bond was issued 25 years ago at a 12 percent coupon...